State-owned Punjab National Bank (PNB) on Friday (September 27) said it has successfully raised ₹5,000 crore through a qualified institutional placement (QIP) of approximately 48.19 crore equity shares.

The shares were issued at a price of ₹103.75 per share, reflecting a 4.96% discount to the floor price of ₹109.16. The QIP, which launched on September 23 and closed on September 26, received an overwhelming response from the market.

The offering attracted bids worth ₹41,734 crore from qualified institutional buyers (QIBs), including mutual funds, foreign portfolio investors (FPIs), and insurance companies, far exceeding the base issue size of ₹2,500 crore. The total bids represented 8.3 times the final issue size of ₹5,000 crore.

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The capital raised will help strengthen PNB’s common equity tier 1 (CET-1) ratio and improve its overall capital adequacy, reinforcing the bank’s financial position and capacity for future growth.

Punjab National Bank (PNB) saw its net interest income (NII) rise 10.2% year-on-year to ₹10,476.2 crore in the April to June 2024 period, according to the public sector lender’s financial results released on July 27. In the corresponding quarter last fiscal, NII came in at ₹9,504.3 crore.

PNB’s net profit at the end of the first quarter of FY25, rose almost 160% year-on-year to ₹3251.5 crore from ₹1,255.4 crore in the June ended quarter of FY24. This is the highest quarterly profit recorded by the bank on account of improvement in various parameters, including net interest income, recovery and CASA, managing director Atul Kumar Goel said.

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Total income in the quarter rose to ₹32,166 crore from ₹28,579 crore in the same period a year ago. The lender’s net non-performing assets (NPA) ratio for the quarter under review stood at 0.82% compared to 0.77% in the preceding quarter. In absolute terms, net NPA came in at ₹5,930 crore versus ₹6,798.8 crore in the March 2024 quarter.

Shares of Punjab National Bank ended at ₹109.25, up by ₹1.95, or 1.82%, on the BSE.